The collapse of the Graaff-Reinet board of executors during the great depression (1929 - 1934)

Abstract

• Opsomming: Die wêreldwye ekonomiese depressie van die jare twintig en dertig het ook kleindorpse finansiële instellings nadelig getref; 'n voorbeeld hiervan was die Graaff-Reinetse Boedelkamer wat in 1856 gestig is en die Midland Agency and Trust Company wat insgelyks op die dorp bestaan het. Toe Groot-Brittanje op 21 September 1931 van die goudstandaard afstap, het genoemde instansies se voortbestaan ernstig in die gedrang gekom. Terwyl die Midland Agency die krisis oorleef het, het die Boedelkamer finansieel in duie gestort - die eerste geval van hierdie aard gedurende die depressie in Suid-Afrika. Die Boedelkamer is op 20 Oktober 1931 gesluit en onder geregtelike bestuur geplaas. ' n Uitvloeisel van hierdie ineenstorting was dat dr. K. Bremer, LV vir Graaff-Reinet, tydens die parlementsitting van 1932 die wysigingswetsontwerp op die Maatskappyewet ingedien het.

• Summary: The world-wide economic depression of 1929-1934 also bore down heavily on small-town financial institutions. A case in point was that of the Graaff-Reinet Board of Executors (established 1856) and the Midland Agency and Trust Company of Graaff-Reinet. A severe blow to their financial viability had been Great Britain's going off the gold standard on 21 September 1931. The Midland Agency was able to survive but the Board of Executors collapsed - the first such instance in South Africa during the great depression. It closed its doors on 20 October 1931 and was thereafter placed under judicial management. One result of this collapse was the introduction of the Companies Amendment Bill into the 1932 parliamentary session by Dr K. Bremer, MP for Graaff-Reinet.